AUD/USD remains rangebound above 0.6550 as markets anticipate upcoming decisions from the Reserve Bank of Australia (RBA) and the US Federal Reserve (Fed). While both central banks are expected to hold rates steady, focus remains on the timing of potential rate cuts.
Key Factors:
- Reduced Fed Rate Cut Bets: Fading expectations for a June rate cut by the Fed weigh on AUD/USD.
- Australian Data: Investors await Australia’s employment figures and PMI data for economic insights.
- Fed Outlook: The updated Fed Dot Plot will shed light on the central bank’s rate projection, potentially impacting market sentiment.
Technical Outlook:
- Bearish Momentum: The pair faces bearish pressure near the 200-hour SMA (0.6580) and struggles to find bullish momentum after rebounding from recent lows.
- SMA Crossover: A bearish crossover of the 50-hour and 200-hour SMAs adds to the negative outlook.
- Support Level: AUD/USD tests the 200-day SMA near 0.6560, a crucial support level for the pair.
